After nearly 40 years on the throne , King Juan Carlos I of Spain said Monday that he will be stepping down .

It is `` time to hand over to a new generation -- younger , with a lot of energy -- that can , with determination , take on and carry out the changes that the current situation demands , and to face with intensity and determination the challenges of tomorrow , '' he said in a televised statement , according to a CNN translation .

`` The long , deep economic crisis we are going through has left a lot of scars socially , but it has also pointed toward a future of hope , '' he said .

Crown Prince Felipe , 46 , will succeed his father . The King said he decided it was `` time to prepare and pave the way so that he who is in better conditions can continue . ''

Prince Felipe is `` stable '' and has `` the maturity , the preparation , and the sense of responsibility necessary '' to serve as king and `` to lead to a new stage of hope using his experience and the drive of a new generation , '' King Juan Carlos added .

Prime Minister Mariano Rajoy first announced the King 's decision .

Spaniards generally hold King Juan Carlos , 76 , in high regard for his service to the nation and his defense of democracy after the death of the dictator Francisco Franco in 1975 .

But the King 's popularity took a hit in 2012 over a controversial elephant-hunting trip to Africa while the nation was mired in a deep economic crisis .

The focus of his reign was to bring about reconciliation between Spaniards of different political persuasions and from different regions .

Many consider the King 's finest hour to be his decisive stand to halt a right-wing military coup in 1981 , when he went on television to say that the monarchy would not tolerate attempts to interrupt democracy by force .

Some push for end of monarchy

Thousands of people demonstrated in Madrid and elsewhere , calling for an end to the monarchy altogether after the announcement Monday .

They waved flags and chanted : `` La monarquia es una porqueria ! '' In English , that phrase means `` the monarchy is garbage . ''

On the global campaign website Avaaz.org , a petition calling for a referendum on the future of the monarchy quickly racked up more than 100,000 signatures . Most were from people indicating that they were in Spain .

`` This is a historic opportunity to promote a broad public debate to help regenerate our democracy and determine the future of the monarchy , '' Luis Javier wrote in the petition .

The call was echoed on Twitter , with some users also posting photos of elephants , saying they were celebrating the King 's abdication .

Retirements of monarchs -LRB- and a pope -RRB-

Oversaw democracy 's return

Born in Rome in 1938 , Juan Carlos did n't set foot in Spain until he was 10 . In Franco 's Spain , he carried out military training and became the first Spanish officer to hold the rank of lieutenant in all three branches of the military .

In 1969 , he was invested as crown prince and the designated successor to Franco .

On November 22 , 1975 -- two days after Franco 's death -- Juan Carlos was crowned king of Spain , restoring the monarchy after a 44-year interregnum .

In 1977 , he enacted political reforms that led to Spain 's first democratic election since 1936 .

During his reign , Spain grew into an economic powerhouse and a vacation playground for Europe .

The King and Queen Sofia had three children and numerous grandchildren , styling their monarchy as accessible and relatively austere .

Juan Carlos : All you need to know

Hunting trip dented image

The private trip to Botswana in 2012 became public only after King Juan Carlos fell , broke his hip and was rushed back to Madrid for surgery .

With millions of Spaniards unemployed , the expense of the African trip caused an outcry . That prompted the king to make a rare apology in which he said he had made a mistake that would not happen again .

The King had previously expressed his concern about the impact of the crisis on Spaniards and called on the nation to come together to get through the tough times .

Other recent scandals have also damaged the monarchy 's image .

Princess Cristina , the king 's youngest daughter , is caught up in a tax fraud and money laundering investigation . She and her husband , Inaki Urdangarin , have denied any wrongdoing over his business dealings and the alleged diversion of public funds .

The scandal has created unprecedented problems for the royal family and kept the country riveted .

There have been open calls for the King to abdicate in favor of Prince Felipe , who is seen as untouched by the scandals .

Belgium 's King Albert II gives up throne to son

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Some Spaniards rally , calling for an end to the monarchy

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It is `` time to hand over to a new generation , '' the King says in a televised statement

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Crown Prince Felipe will succeed the King

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Many feel King Juan Carlos ' finest hour was a stand against a coup